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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (April 25, 2014)

April 25, 2014, Friday, 07:37 GMT | 02:37 EST | 11:07 IST | 13:37 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a positive note yesterday taking cues from favorable durable goods orders data from the US. Also, favorable German Ifo Business Climate data coupled with weakness in the DX supported gains.

However, rise in risk aversion in the market sentiments owing to escalating tension between Russia and Ukraine along with rise in jobless claims data from the US restricted sharp upside movement in prices.

In the Indian markets, base metals traded higher taking cues from International markets as domestic markets were closed yesterday.


Copper

LME Copper prices jumped by more than 1 percent yesterday on the back of robust durable goods orders data from the US that boosted demand for the red metal. Also, weakness in the DX along with jump in German Ifo Business Climate data acted as positive factors.

However, sharp upside was cushioned owing to more than expected rise in Unemployment Claims data from the US. Also, mixed global market sentiments exerted downside pressure on prices. The red metal closed at $6751/tonne on Wednesday.

MCX Copper prices rose by 0.6 percent yesterday and closed at Rs.413.6/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of mixed global markets sentiments which will exert downside pressure on prices. Also, weak retail sales data from UK will act as a negative factor.

While on the other hand, estimates of favorable Revised UoM Consumer Sentiment from the US in the evening session coupled with weakness in the DX will cushion sharp downside or even reversal in prices.

In the Indian markets, Rupee depreciation will support gains in prices.